Suppose There Is a Decline in the Price Level

Multiple Choice

Suppose there is a decline in the price level. This means that

A) the real wage decreases, and firms are willing to hire more people.
B) the real wage is unaffected by the inflation rate.
C) the real wage increases, and firms are willing to hire more people.
D) the real wage decreases, and firms are willing to hire fewer people.
E) the real wage increases, and firms are willing to hire fewer people.